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Trump Imposes Tariffs on Drones from Key Allies

According to Reuters, on August 13 local time, U.S. President Donald Trump stated that he would impose tariffs on imported drones and their components, including products from some important allies of the United States. The Trump administration said that the United States is 'too dependent' on drones sourced from foreign countries.

The White House stated that a declaration signed by Trump imposes a 100% ad valorem tariff on drones of certain sizes or with certain capabilities, which are particularly sensitive for national security purposes. Additionally, a 25% tariff is imposed on smaller drones.

The White House added that a 15% ad valorem duty will be imposed on drones and their components from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan, China. A 10% ad valorem duty will be imposed on drones from the United Kingdom.

In a statement released by Trump at the White House, Commerce Secretary Howard Ruthenick said that he has investigated the impact of the importation of unmanned aircraft systems, or drones.

Trump said, "The minister found that foreign manufacturers have a significant degree of influence in the drone industry, and the United States relies too much on drones and their components from abroad."

Trump said that Lutnick identified drones from certain foreign entities and their components as a "security risk," and that American domestic industries were unable to produce enough products to meet security requirements.

The White House stated that these tariffs will take effect in 21 days. For unmanned aerial vehicle components that are not particularly sensitive, the tariffs will come into effect 180 days after the signing.

The White House also stated that the tariffs will take effect 180 days after the signing, provided that the Pentagon approves exemptions from the Federal Communications Commission’s “Coverage List” within 20 days after the signing.

Bloomberg said that this announcement could have a significant impact on China’s drones in the US market. China is the leading manufacturer of drones globally, and DJI, headquartered in Shenzhen, accounted for about 70% of the US commercial drone market last year.